Risk Disclosure

All investments carry risk. The value of securities can decrease as well as increase. Past performance of any security, strategy, or model is not indicative of future results. Economic conditions, market sentiment, company fundamentals, and geopolitical events can all cause unexpected losses.

• Options can expire worthless. Buyers of options can lose 100% of the premium paid.
• Sellers face assignment risk. If you sell a put and it is assigned, you are obligated to buy 100 shares at the strike price regardless of the current market price.
• Covered calls cap your upside. Selling a covered call obligates you to sell shares at the strike price even if the stock rises significantly above it.
• Spreads involve multiple legs. Each leg has its own risk and the combined position may behave unexpectedly, particularly near expiry or during low-liquidity conditions.
• Implied volatility crush. Options prices can drop sharply after earnings or events even when the stock moves in your direction (IV crush).
• Leverage amplifies losses. Options provide leverage. A small adverse move in the underlying can result in a large percentage loss on the option position.
• Liquidity risk. Some options have wide bid-ask spreads. You may not be able to close a position at a fair price.

Arowana Profits uses financial models including Black-Scholes (options pricing), DCF (stock valuation), and Ben Graham Formula. These models have well-known limitations:

• Black-Scholes assumes constant volatility and log-normal returns — neither of which holds in practice. It does not account for early exercise, dividends, or volatility smiles.
• DCF models are highly sensitive to growth rate and discount rate assumptions. Small changes in inputs produce large changes in output. The model is only as good as your assumptions.
• Ben Graham Formula was developed for a different interest rate environment. Results should be treated as a rough screening tool, not a precise valuation.
• AI analysis (Arowana Trader, Portfolio Advisor) may contain errors, outdated information, or hallucinations. AI outputs are not verified by licensed financial professionals.

No scan result, AI analysis, valuation output, or tool result on Arowana Profits constitutes a buy, sell, or hold recommendation. All outputs are illustrative and educational. You are solely responsible for any investment decisions you make.

Arowana Profits is not registered as an investment advisor, broker-dealer, or financial planner with any regulatory authority. We do not provide personalized investment advice.

Before trading options, you should: (1) Read the Characteristics and Risks of Standardized Options (ODD) document published by the Options Clearing Corporation; (2) Complete options education through your broker; (3) Understand your broker's margin requirements and assignment procedures; (4) Only trade options you fully understand; (5) Start with small position sizes while learning.